The Asian Development Bank (ADB) and Japan on Saturday announced a five-year, $16 billion “partnership”, including an investment fund, to support “sustainable” infrastructure development in the region.
The ADB said the first activity would be establishment of a trust fund by March 2016, to be capitalized with $1.5 billion from the Japan International Cooperation Agency (JICA).
Combined with the ADB’s own capital and that of “commercial cofinancing partners”, the fund should provide financing of at least $6 billion, the ADB said.
Another $10 billion for promoting public infrastructure will be provided by ADB and JICA in cofinancing to sovereign borrowers over five years.
“Support for quality and sustainable infrastructure has been a central feature of our operations since ADB’s foundation in 1966 to achieve poverty reduction and sustainable development in Asia and the Pacific,” ADB President Takehiko Nakao said in a statement.
About half the Japanese funds will be extended by state agencies involved in aid and loans and the rest in collaboration with the ADB.
It was not immediately known if the trust fund was part of Japan’s quality infrastructure programme, which Prime Minister Shinzo Abe discussed during the past week’s Asia Pacific Economic Cooperation (APEC) summit in Manila.
In May, Japan unveiled a $110 billion infrastructure fund that could rival the China-led Asian Infrastructure Investment Bank that will begin operation next year.
On Thursday, the Japanese and Philippine government signed an agreement under which Tokyo will provide $2 billion to fund a commuter rail system from Manila to Malobos, north of the capital. – Reuters
ADB, Japan propose $16bln plan to support sustainable Asia infrastructure.